The U.S. Supreme Court has ruled it is not a violation of federal law for bankruptcy attorneys to advise their clients to acquire more debt before filing for bankruptcy, nor is a new provision to the bankruptcy code unconstitutional.
The case came to the Supreme Court after a Minnesota Law firm challenged a provision in the 2005 bankruptcy laws that said it was an abuse of the bankruptcy system to encourage clients to take on more debt before filing for bankruptcy. The firm argued that sometimes taking on more debt is the best and most practical thing to do to help the client.
The law firm also argued that the law was a violation of attorneys’ constitutional rights to freedom of speech. The attorney who addressed the court said he feared the law infringed on their right to provide their clients with “unfettered, candid advice.”
The Supreme Court ruled that bankruptcy attorneys can give their clients whatever advice they’d like, as long as it does not lead to an abuse of the bankruptcy system. The Supreme Court also ruled that the provision of the bankruptcy code is not unconstitutional and that it does not violate attorneys’ First Amendment right to freedom of speech.
Considering Filing for Bankruptcy in San Antonio?
The Malaise Law Firm offers experienced and trusted legal counsel to people throughout the San Antonio area who need help filing for bankruptcy. If you’re interested in learning more about filing for bankruptcy or how the new bankruptcy laws might affect your petition, please do not hesitate to contact our office today to schedule a consultation with an experienced San Antonio bankruptcy lawyer!